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50% of eurobond money traced to a US bank
Rank: Veteran Joined: 9/21/2011 Posts: 2,032
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murchr wrote:limanika wrote:Seen the explanation @ muchr. My quiz is where did CBK get the 88b ksh denominations in first place. Did they print it, or was it the normal reserve held for other banks Normally, Kenyan banks & foreign bureaus buy the $$ from central bank and sell it to Kenyans needing it ama where's the mystery? 2. CBK is the banker for all banks in KE and am assuming they operate in KES ama? Exactly. So assuming CBK 'borrowed' reserves from local banks, and author of thread says 50percent never landed in Kenya, how did CBK clear its 'debt' i.e were the reserves for local banks replenished
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Rank: Elder Joined: 7/23/2008 Posts: 3,017
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limanika wrote:murchr wrote:limanika wrote:Seen the explanation @ muchr. My quiz is where did CBK get the 88b ksh denominations in first place. Did they print it, or was it the normal reserve held for other banks Normally, Kenyan banks & foreign bureaus buy the $$ from central bank and sell it to Kenyans needing it ama where's the mystery? 2. CBK is the banker for all banks in KE and am assuming they operate in KES ama? Exactly. So assuming CBK 'borrowed' reserves from local banks, and author of thread says 50percent never landed in Kenya, how did CBK clear its 'debt' i.e were the reserves for local banks replenished  Very complicated situation. This now should be moved to the Investment section where brains are. Qsn; Did the Eurobond Usd 1B get to Kenya. The correct answer is YES. Simple logic, the borrower was the GOK who received the equivalent KES amount from CBK. There is 1/2 truth when one says the Usd 1B never got to Kenya, because technically, it did not as CBK has chosen to hold it in a foreign account. Hence it did not enter into circulation in Kenya. Whats important here is that they can access it when they want, where the cash is physically located is of no consequence. CBK has cash in various denominations and in accounts with correspondent banks. Where CBK got the Kes to exchange is also irrelevant, as long as the bond proceeds have been received, I assume CBK can use its discretion to either use the money in supply or print new notes (if treasury wanted physical cash), however my assumption is that Treasury account was credited. But, as much as we try to defend the Govt, someone kulad something in this Eurobond deal, how they did it is more complicated than the assumption playing out in the media, where you simply walk into treasury with a gunia and walk away with a sackful of notes. Lets wait for the next twist. "The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
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Rank: Member Joined: 10/14/2011 Posts: 661
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Obi 1 Kanobi wrote:limanika wrote:murchr wrote:limanika wrote:Seen the explanation @ muchr. My quiz is where did CBK get the 88b ksh denominations in first place. Did they print it, or was it the normal reserve held for other banks Normally, Kenyan banks & foreign bureaus buy the $$ from central bank and sell it to Kenyans needing it ama where's the mystery? 2. CBK is the banker for all banks in KE and am assuming they operate in KES ama? Exactly. So assuming CBK 'borrowed' reserves from local banks, and author of thread says 50percent never landed in Kenya, how did CBK clear its 'debt' i.e were the reserves for local banks replenished Very complicated situation. This now should be moved to the Investment section where brains are. Qsn; Did the Eurobond Usd 1B get to Kenya. The correct answer is YES. Simple logic, the borrower was the GOK who received the equivalent KES amount from CBK. There is 1/2 truth when one says the Usd 1B never got to Kenya, because technically, it did not as CBK has chosen to hold it in a foreign account. Hence it did not enter into circulation in Kenya. Whats important here is that they can access it when they want, where the cash is physically located is of no consequence. CBK has cash in various denominations and in accounts with correspondent banks. Where CBK got the Kes to exchange is also irrelevant, as long as the bond proceeds have been received, I assume CBK can use its discretion to either use the money in supply or print new notes (if treasury wanted physical cash), however my assumption is that Treasury account was credited. But, as much as we try to defend the Govt, someone kulad something in this Eurobond deal, how they did it is more complicated than the assumption playing out in the media, where you simply walk into treasury with a gunia and walk away with a sackful of notes. Lets wait for the next twist.  http://www.capitalfm.co....c-euro-bond-money-trail/
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Rank: Veteran Joined: 9/21/2011 Posts: 2,032
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@obi, it's said the 1$b is still in US. That's 0ne. Two, simple economics is that inflow of 200b in $ should lead to appreciable strengthening of the shilling and improvement of macroeconomic situation e.g. lower interest rates, as dollar inflows increas- with some noticeable CBK intervention to minimize shocks. But it's like eurobond had zero effect. Anyone can create fancy charts of the money trail. What we want is chart of the effects even if not so fancy
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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Thiong'o wrote:Obi 1 Kanobi wrote:limanika wrote:murchr wrote:limanika wrote:Seen the explanation @ muchr. My quiz is where did CBK get the 88b ksh denominations in first place. Did they print it, or was it the normal reserve held for other banks Normally, Kenyan banks & foreign bureaus buy the $$ from central bank and sell it to Kenyans needing it ama where's the mystery? 2. CBK is the banker for all banks in KE and am assuming they operate in KES ama? Exactly. So assuming CBK 'borrowed' reserves from local banks, and author of thread says 50percent never landed in Kenya, how did CBK clear its 'debt' i.e were the reserves for local banks replenished Very complicated situation. This now should be moved to the Investment section where brains are. Qsn; Did the Eurobond Usd 1B get to Kenya. The correct answer is YES. Simple logic, the borrower was the GOK who received the equivalent KES amount from CBK. There is 1/2 truth when one says the Usd 1B never got to Kenya, because technically, it did not as CBK has chosen to hold it in a foreign account. Hence it did not enter into circulation in Kenya. Whats important here is that they can access it when they want, where the cash is physically located is of no consequence. CBK has cash in various denominations and in accounts with correspondent banks. Where CBK got the Kes to exchange is also irrelevant, as long as the bond proceeds have been received, I assume CBK can use its discretion to either use the money in supply or print new notes (if treasury wanted physical cash), however my assumption is that Treasury account was credited. But, as much as we try to defend the Govt, someone kulad something in this Eurobond deal, how they did it is more complicated than the assumption playing out in the media, where you simply walk into treasury with a gunia and walk away with a sackful of notes. Lets wait for the next twist. http://www.capitalfm.co....c-euro-bond-money-trail/ Who came up with this diagram which doesn't explain anything? If Obiero did it, Who Am I?
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Rank: Veteran Joined: 10/29/2008 Posts: 1,566
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Obi 1 Kanobi wrote:limanika wrote:murchr wrote:limanika wrote:Seen the explanation @ muchr. My quiz is where did CBK get the 88b ksh denominations in first place. Did they print it, or was it the normal reserve held for other banks Normally, Kenyan banks & foreign bureaus buy the $$ from central bank and sell it to Kenyans needing it ama where's the mystery? 2. CBK is the banker for all banks in KE and am assuming they operate in KES ama? Exactly. So assuming CBK 'borrowed' reserves from local banks, and author of thread says 50percent never landed in Kenya, how did CBK clear its 'debt' i.e were the reserves for local banks replenished Very complicated situation. This now should be moved to the Investment section where brains are. Qsn; Did the Eurobond Usd 1B get to Kenya. The correct answer is YES. Simple logic, the borrower was the GOK who received the equivalent KES amount from CBK. There is 1/2 truth when one says the Usd 1B never got to Kenya, because technically, it did not as CBK has chosen to hold it in a foreign account. Hence it did not enter into circulation in Kenya. Whats important here is that they can access it when they want, where the cash is physically located is of no consequence. CBK has cash in various denominations and in accounts with correspondent banks. Where CBK got the Kes to exchange is also irrelevant, as long as the bond proceeds have been received, I assume CBK can use its discretion to either use the money in supply or print new notes (if treasury wanted physical cash), however my assumption is that Treasury account was credited. But, as much as we try to defend the Govt, someone kulad something in this Eurobond deal, how they did it is more complicated than the assumption playing out in the media, where you simply walk into treasury with a gunia and walk away with a sackful of notes. Lets wait for the next twist. You risk being branded - Jubilee mole Isuni yilu yi maa me muyo - ni Mbisuu
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Rank: Elder Joined: 7/23/2008 Posts: 3,017
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limanika wrote:@obi, it's said the 1$b is still in US. That's 0ne. Two, simple economics is that inflow of 200b in $ should lead to appreciable strengthening of the shilling and improvement of macroeconomic situation e.g. lower interest rates, as dollar inflows increas- with some noticeable CBK intervention to minimize shocks. But it's like eurobond had zero effect. Anyone can create fancy charts of the money trail. What we want is chart of the effects even if not so fancy @Limanika, That's what I tried to explain in my above post, the money does not need to be here physically, as long as CBK considers that it has Usd 1B lying idle in some foreign accounts when they conduct their macroeconomic interventions, its ok. On the macroeconomic impact of the borrowing, I said clearly that someone ate something in the Euro bond deal, we don't know yet how but this being a public looting, it will eventually come out as they all do. ask Justice Tunoi. "The purpose of bureaucracy is to compensate for incompetence and lack of discipline." James Collins
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Rank: Member Joined: 10/14/2011 Posts: 661
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"imported inflation" described the condition created by countries that invest in foreign bonds as "imported inflation" but noted that a country with strong macroeconomic fundamentals should be able to handle its debts. He added that countries that continue to borrow abroad need to put in place policies that would allow them to pay without compromising their macroeconomic climate. http://www.businessdaily...8/-/ytim56z/-/index.html
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Rank: Veteran Joined: 9/21/2011 Posts: 2,032
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Obi 1 Kanobi wrote:limanika wrote:@obi, it's said the 1$b is still in US. That's 0ne. Two, simple economics is that inflow of 200b in $ should lead to appreciable strengthening of the shilling and improvement of macroeconomic situation e.g. lower interest rates, as dollar inflows increas- with some noticeable CBK intervention to minimize shocks. But it's like eurobond had zero effect. Anyone can create fancy charts of the money trail. What we want is chart of the effects even if not so fancy @Limanika, That's what I tried to explain in my above post, the money does not need to be here physically, as long as CBK considers that it has Usd 1B lying idle in some foreign accounts when they conduct their macroeconomic interventions, its ok. On the macroeconomic impact of the borrowing, I said clearly that someone ate something in the Euro bond deal, we don't know yet how but this being a public looting, it will eventually come out as they all do. ask Justice Tunoi. @obi, abit of double speak right there. You say the money trail is clean, or money is where it ought to be, but there was stealing and can't figure out how? This is what we're trying to figure out. And if the money didn't need to be shipped to Kenya, why were we borrowing in the first place if CBK could do all the gymnastics without breaking a sweat. I mean, when we are repaying this eurobond, real money (govt revenue) in ksh is converted to $ and shipped abroad but us when we borrowwe ddon't ship in???
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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Obi 1 Kanobi wrote:limanika wrote:@obi, it's said the 1$b is still in US. That's 0ne. Two, simple economics is that inflow of 200b in $ should lead to appreciable strengthening of the shilling and improvement of macroeconomic situation e.g. lower interest rates, as dollar inflows increas- with some noticeable CBK intervention to minimize shocks. But it's like eurobond had zero effect. Anyone can create fancy charts of the money trail. What we want is chart of the effects even if not so fancy @Limanika, That's what I tried to explain in my above post, the money does not need to be here physically, as long as CBK considers that it has Usd 1B lying idle in some foreign accounts when they conduct their macroeconomic interventions, its ok. On the macroeconomic impact of the borrowing, I said clearly that someone ate something in the Euro bond deal, we don't know yet how but this being a public looting, it will eventually come out as they all do. ask Justice Tunoi. First it was $999M Then KES 140B Then Kes 10B The search for hot air continues. Let me leave with the cliche that has become the norm. "This raises more questions than answers"
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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